VANCOUVER, BRITISH COLUMBIA - AUGUST 22, 2012 - (TSX-V: PTV) Petro Vista Energy Corp. (“Petro Vista” or the “Company”), an independent oil and gas exploration and production company provides the following update:
Operations - Brazil
The ongoing workover program to install downhole pumps on the two existing wells in the Tartaruga Field in Brazil by the Operator is still underway and, despite some significant operational challenges, is expected to be completed before the end of August. During the pulling of the completion on one of the wells, the tubing parted and an extensive fishing and milling operation had to be undertaken. This operation is nearing completion and preparations are underway to install the new pump in this well. Once this is completed, another pump will be installed in the second well.
The Company would also like to announce that it has negotiated a loan agreement with Keith Hill (the “Lender”), the Chairman and a director of the Company.
The unsecured loan in the principal amount of $500,000 (the “Loan”) matures and will be repayable on December 31, 2012 and accrues simple interest at a rate of 8% per annum.
The Lender is a related party and the loan transaction is a related party transaction. However, the directors of the Company, all of whom are independent in the respect of the Loan, have determined that the terms and conditions of the Loan are fair and reasonable and in the best interests of the Company, and have unanimously approved the Loan. In addition, the directors of the Company have determined that the Loan is exempted from the formal valuation and minority shareholder approval requirements.
The Company will use the proceeds of the Loan to fund a portion of the ongoing work over of the Tartaruga wells and for general working capital purposes.
About Petro Vista Energy
Petro Vista Energy Corp. is an oil and gas exploration and development company with near-term production opportunities in South America. The Company has the rights to acquire an interest in an exploration, development and production property in Brazil.
ON BEHALF OF PETRO VISTA ENERGY CORP.
Chairman of the Board of Directors
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This press release includes "forward-looking statements" including expectations for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Statements regarding the Company's plans and expectations for the successful completion of the workoover of the wells and future development of the Tartaruga Block, future growth of the Company, development success, future production, reserve additions and capital expenditures are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, inflation or lack of availability of goods and services, environmental risks, drilling, completion and production risks, equipment failure, availability of labor, unexpected geological or other effects, regulatory changes and availability of capital. Additionally there are no guarantee that the workover of either of the Tartaruga wells will be successfully completed or that if successfully completed will result in an increase or sustainable increase in oil production. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. The Company does not assume the obligation to update any forward-looking statement, except as required by applicable law.
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